3. Assume you have $20,000 to invest and must choose between two investments. Expected net cashflows over the 6 year investment are shown in the table below. a. Analyze both investments using the payback period, simple rate of return, net present value and internal rate of return methods using a 4 percent discount rate. Please show your work to receive full marks. If you use Excel to complete the analysis, please upload your Excel file to Canvas. (8 marks) b. For each investment analysis method, which investment would you select? marks) C. Calculate the Net Present Value of Investment A and B using a 6% discount rate. Does your preferred investment change? Why or why not? (3 marks) d. Now assume you have a third investment possibility to consider. Investment Cis estimated to return $6,000 a year for 6 years and has an initial investment of $22,000. Calculate the profitability index for Investments A, B and C using a 5% discount rate. Which is the preferred investment using this capital investment analysis method? (3 marks) Year 0 1 2 Investment A (20,000) 5,000 5,000 5,000 5,000 5,000 5,000 Investment B (20,000) 1,000 14,000 4,000 4,000 81000 10,500 3 3. Assume you have $20,000 to invest and must choose between two investments. Expected net cashflows over the 6 year investment are shown in the table below. a. Analyze both investments using the payback period, simple rate of return, net present value and internal rate of return methods using a 4 percent discount rate. Please show your work to receive full marks. If you use Excel to complete the analysis, please upload your Excel file to Canvas. (8 marks) b. For each investment analysis method, which investment would you select? marks) C. Calculate the Net Present Value of Investment A and B using a 6% discount rate. Does your preferred investment change? Why or why not? (3 marks) d. Now assume you have a third investment possibility to consider. Investment Cis estimated to return $6,000 a year for 6 years and has an initial investment of $22,000. Calculate the profitability index for Investments A, B and C using a 5% discount rate. Which is the preferred investment using this capital investment analysis method? (3 marks) Year 0 1 2 Investment A (20,000) 5,000 5,000 5,000 5,000 5,000 5,000 Investment B (20,000) 1,000 14,000 4,000 4,000 81000 10,500 3